Vol. 149, No. 11 — June 3, 2015

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 21.4 (see footnote a) of the National Housing Act(see footnote b), makes the annexed Regulations Amending the Housing Loan (Insurance, Guarantee and Protection) Regulations.

AMENDMENTS

1. The Housing Loan (Insurance, Guarantee and Protection) Regulations(see footnote 1) are amended by adding the following after section 3:

CONDITIONS ON THE CORPORATION

Restriction — substitution

3.1 (1) The Corporation must not replace an insured loan with another housing loan under the same insurance coverage unless

(a) both loans are made to the same borrower and the purpose of the new loan is to discharge the outstanding balance of the loan being replaced; or

(b) the new loan is made in relation to a loan workout whose purpose is to reduce or avoid losses on a real or potential housing loan insurance claim in respect of the outstanding loan being replaced.

Restriction — portfolio insurance

(2) If the Corporation makes a commitment to insure a portfolio of housing loans up to a specified total value, it must not insure a housing loan in accordance with that commitment later than one year after the day on which the commitment is made.

2. The Regulations are amended by adding the following after section 4:

Existing portfolio commitment

4.1 (1) Subsection 3.1(1) does not apply in respect of insurance coverage resulting from a commitment to insure a portfolio of housing loans up to a specified total value that is made before that subsection comes into force.

Existing portfolio commitment

(2) Subsection 3.1(2) does not apply in respect of a commitment that is made before that subsection comes into force.

COMING INTO FORCE

3. These Regulations come into force on the day on which they are registered.